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✓ Published: 06-Jun-2024
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✓ Published: 06-Jun-2024
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The European Central Bank is expected to cut its key interest rates this week for the first time since September 2019. This will mark the end of the record-fast rate hiking cycle begun during the COVID-19 pandemic to combat high inflation. Eurozone inflation came in slightly higher than expected in May at 2.6%, and core inflation at 2.9%. ECB officials say a single rate cut is consistent with their stance, but more cuts in July are not very likely. Domestic inflation, especially in services, remains persistent in the euro area.
The European Central Bank is expected to cut its key interest rates this week for the first time since September 2019. This will mark the end of the record-fast rate hiking cycle begun during the COVID-19 pandemic to combat high inflation. Eurozone inflation came in slightly higher than expected in May at 2.6%, and core inflation at 2.9%. ECB officials say a single rate cut is consistent with their stance, but more cuts in July are not very likely. Domestic inflation, especially in services, remains persistent in the euro area.
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